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China National Offshore Oil Corp. Ltd.(CNOOC) has opened up to overseas investors 22 untapped oil and gas areas covering 44,015 sq miles (114,050 sq km, mostly in South China Sea, China Securities Journal reports. Most of these 22 areas are in shallow waters, including three in Yellow Sea, four in East China Sea, 15 in South China Sea. Only one area is as deep as 656 to 6562 ft (200 to 2,000 m). This is the largest round of bidding in terms of scale for years, a staff member with CNOOC told the newspaper. These areas are not open to domestic investors, according to CNOOC. Several transnational petroleum companies are reported to be considering the specific status of these areas before signing contracts. By May 2006, CNOOC had signed 172 contracts and agreements with 75 oil companies worldwide on offshore oil exploration and production. Annual production of these projects now account for 65% of the country's total oil and gas production. The company's deep-water strategy, which has seen it team up with Canada's Husky Energy controlled by Li Ka-shing last year, has attracted a large amount of foreign capital since the 1980s. According to China's law, CNOOC has the exclusive right to sign production-sharing contracts with foreign firms, under which the subsidiary has to bear all the exploration risks. CNOOC Ltd. is entitled to a 51% stake in the development and production of any resources discovered. Source: Xinhua |
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